In our last blog post, we released a legal summary of the most recent lawsuit making the rounds in the transportation business industry. Our goal was to provide contractors with the facts and a summary along with our best industry recommendations. Our advice is always based on past experience and what we believe is best for contractors, but ultimately we want to empower contractors to make their own choices based on their unique business situations.
Topics: FedEx, Ground, ISP, FedEx Ground, Business, Contract, contractor, Profit, settlement, Cash flow, Costs, Network 2.0, Margins, time definate, low cost model, fxg, CSP
We've got some news that's making waves in our circle. A new lawsuit has popped up concerning contractor status. It's stirring quite a bit of chatter, and we at eTruckBiz think it's crucial to chat about it, especially since it touches on the heart of our operations – the independent contractor model.
Topics: FedEx, ISP, FedEx Ground, Business, Contract, Negotiation, contractor, Financial, Network 2.0, Margins, fedex legal issues, low cost model, fedex ground contractors, fedex ground legal advice, fxg, fedex lawsuit, Spencer patton, Patton Logistics, CSP
It has been a long time since economic conditions were favorable for a package rate war between UPS & FedEx.
In fact, because of generally good economic conditions, until a couple of years ago, there was little need for our two favorite competitors to try to steal each other’s business. A rising tide had been raising all boats, even including regional package carriers. Most indicators were signaling that there would never be another true price “war” like there was in the early 90’s, the early 2000’s or the period from 2008 - 2010.
Everything was stable in “pricing-land”...
Until it wasn’t.
Topics: FedEx, FedEx Ground, Business, Negotiation, contractor, Financial, Margins
Running a FedEx Ground contracting business has never been more challenging. As we navigate through the implementation of Network 2.0, contend with record inflation, and face labor market challenges, many CSPs find themselves pulled in various directions. The landscape is shifting, and margins are tighter than ever, making it essential to find a way to not just survive but thrive.
Topics: Driver Recruiting, Timekeeping, FedEx, Payroll, FedEx Ground, Business, DRO, vedr
This week, it was announced that all Canada Ground operations are going to eventually be converted to FedEx Express Canada over the next year and a half, as
part of the larger Network 2.0 operational transformation.
While we don’t know what the plans are exactly for the U.S. network, we can make some logical assumptions about what the move probably means and doesn’t mean for current CSPs.
Topics: Business Structure, FedEx, Ground, FedEx Ground, Business, Contract, contractor, linehaul, Network 2.0, transformation
This week, Contracted Service Providers will be introduced to the future.
(Project Drive?) is going to be unveiled to the masses.
What this means for CSPs is that business going forward is not going to be business as usual. Long-standing operating practices are all about to be changed, and with them, accepted CSP systems & processes will need to adapt, or get left behind.
A new type of operating awareness is about to rule the day. Those who embrace change will thrive.
At eTruckBiz, we've been anticipating and tracking these changes for a long time now. As a result, we have been developing a new application to make all of these changes easier for contractors. In our opinion, managing these metrics moving forward will be absolutely critical to success as a FedEx Contractor. With that in mind, we are introducing the Biz Status Tracker completely free.
Topics: Management, Business Metrics, FedEx Ground, Dashboard, Network 2.0, Real time, definite, Software, time
By now, most of us have seen or heard the news that FedEx is rolling out a new system for rating contractor performance.
Initial indications are that there will be three tiers (Gold, Silver & Bronze) and your operation will be classified as one tier or another based on several safety, service and customer experience metrics, on a monthly basis. Word out there is that some operating efficiency data will also be included, so productivity will be a part of this too.
It appears that the days of simply meeting contractually accepted service & safety performance standards to assure continued contracting participation are about to be gone.
So the question being asked is, what does this really mean for contractors?
Topics: Business Outlook, FedEx, Management, Business Metrics, FedEx Ground, Business, Dashboard
At eTruckBiz, our mission is simple- to help contractors run the easiest and most profitable business possible. Recently we’ve become aware of a potentially growing problem found within several contractors’ operating agreements. In each case, these were recently negotiated contracts done by popular brokers in the FXG space.
Topics: Business Results, ISP Negotiation, FedEx, FedEx Ground, Business, Contract, Negotiation, contractor, Profit, Agreement, consulting, settlement, Cash flow, brokerage, brokers
Can anything good come from a grim FedEx earnings pre-announcement?
While the announcement and the withdrawal of next fiscal year’s guidance are ominous signs of storminess to come, there may be a silver lining. In recent months, eTruckBiz has seen a 70% increase in renegotiation requests for its clients being granted, signaling that FedEx may be more willing than ever to work with struggling contractors.
As many of you know from attending our many informational sessions over the years, the contractor model affords FedEx Ground the lowest cost provider of last mile transportation services in the industry.
It appears that now may be the time to unleash the power of this competitive advantage.
Topics: Business Results, ISP Negotiation, FedEx, FedEx Ground, Business, Contract, Negotiation, contractor, Profit, Agreement, consulting, settlement, Cash flow, recession, Rates
So as you might imagine, there is a considerable amount of chatter out there about some recent, controversial events.
Many want to know what we think about the whole situation.
We’re going to give you some thoughts, but I’d like to point out our perspective on the matter first.
Topics: Law, Management, FedEx Ground, Business, Investment, Agreement, consulting, Money, settlement, renegotiation, Financial
This post is the second in a two-part series.
In my last blog post, I shared that people often ask me, “Should I pay my drivers by the day or by the hour?” My answer is based on comparing both methods, and I'll tell you why I recommend paying drivers by the hour.
Paying by the day is still most common because it’s a holdover from when delivery volume was consistent and only 5-days per work week.
As a result of adding residential service and e-commerce, package volume swings now vary widely on a daily basis. Paying drivers by the day has made business owner profitability more challenging.
Topics: Business Structure, Payroll, Ground, FedEx Ground, overtime, leadership, Money
This post is the first in a series on choosing to pay drivers by the hour, or by the day.
Almost every week, another new Contractor will ask me an old question. Should I pay my drivers hourly, or by the day? There’s truly one right answer, but complex dynamics cause many new CSP’s to believe that the old ways of paying drivers are acceptable.
Many new Contractors do not bring transportation industry experience with them. Although it’s likely they achieved significant success in their previous ventures. That success can lead to a variety of ways they address driver compensation.
New Contractors typically choose to either keep the same practices as the previous owner, or they make drastic changes. If they choose the latter, it’s because they recognize the existing compensation method is not financially feasible.
Topics: Business Structure, Payroll, Ground, FedEx Ground, overtime, leadership, Money
Any investment made into a business should be measured by its return. Simply put, when businesses invest in a product or an initiative, they expect that the profits created by the investment will outweigh the cost of the investment.
This is no different in the transportation industry.
If you take a minute to think about what options you could invest in, that could provide you substantial returns, what is it that comes to mind? New trucks? The latest software package that promises the world? Some other shiny object?
There is one thing, that may not be obvious, that will no doubt provide you with a lasting return on your investment. Most larger companies understand that investing in this one thing provides big time returns, and don’t mind the investment it takes.
And now, this type of investment is available to you…
Topics: Classes, Training, Ground, FedEx Ground, leadership, Money
Image by Lytx
Keeping track of fleet management metrics is necessary in order to make objective decisions and improve performance over time. Tracking KIs is an important aspect of measuring efficiency and productivity and is integral to identifying problems and making corrections. Safety KIs, in particular, are essential to keeping your fleet running at optimum levels while ensuring minimal risk.
Topics: Business Tools, Business Results, Compliance, Training, Business Metrics, FedEx Ground, Business, Investment, safety, coaching, vedr
Do you spend a lot of time thinking about how to improve your transportation company operations? If you’re a FedEx Ground Contractor, there are thousands of Contractors like you sharing the same questions.
And if you’re not a FedEx Ground Contractor, but are thinking about getting in the game - there are tens of thousands people like you asking themselves questions.
Or, if you’re a Business Contact (BC), thousands of transportation company managers are wondering the same things. What are some easy ways our team can get to the top of our game?
Zig Ziglar’s famous catch phrase was, “See you at the top!” Well, Zig, how do we get to the top?
Topics: Business Results, FedEx, Classes, Training, FedEx Ground, Metrics, Profit